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F E D E R A L R E S E R V E B A NK
O F N E W YORK
Fiscal Agent o f the United States
V

r Circular No. 4 6 8 6 1
L J a n u a r y 15,1959 J

OFFERING OF TW O SERIES OF TREASURY BILLS
$1,400,000,000 of 91-Day Bills, Dated January 22, 1959, Maturing April 23, 1959
$400,000,000 of 182-Day Bills, Dated January 22, 1959, Maturing July 23, 1959
T o all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal R eserv e D istrict:

Following is the text o f a notice published today:
R E L E A S E , A .M . N E W S P A P E R S ,
T h u rsd a y, January 15, 1959.

TREASURY DEPARTM ENT
W ashington

T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites ten ders for tw o series o f T rea su ry bills to the a ggreg ate am ou nt
o f $1,800,000,000, o r thereabouts, fo r cash and in exch a n ge fo r T reasu ry bills m atu rin g January 22, 1959, in the am ou nt o f
$1,799,712,000, as fo llo w s :
91-day bills, for $1,400,000,000, o r th ereabouts, to be dated January 22, 1959, and to mature A p ril 23, 1959.
182-day bills, fo r $400,000,000, o r thereabouts, to be dated January 22, 1959, and to m ature Ju ly 23, 1959.
T h e bills o f b o th series w ill be issued on a d iscou n t basis under com petitive and n on com p etitive b id d in g as hereinafter
provid ed , and at m aturity their face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly , and
in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e).
T e n d e rs w ill be received at Federal R eserve Banks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., Eastern
S tandard tim e, M on d a y, January 19, 1959. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach
ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on
the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders be
m ade o n the printed fo rm s and forw a rd ed in th e special en velop es w hich w ill be supplied b y F ed eral R eserve B anks or
B ra n ch es on application therefor.
O th e rs than b ankin g institutions w ill n ot be perm itted to subm it tenders ex cep t fo r their ow n a ccou n t. T en d ers w ill be
receiv ed w ith ou t dep osit from in corpora ted banks and trust com panies and fr o m respon sib le and recog n ized dealers in in vest­
m e n t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills
applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted ba n k or trust com pan y.
Im m ed ia tely a fter the closin g hour, ten ders w ill be op en ed at th e F ed eral R eserve B anks and B ran ches, fo llo w in g w hich
p u b lic a nn oun cem ent w ill be made b y the T rea su ry D ep a rtm en t o f the a m ou n t and p rice range o f a ccep ted bids. T h o s e
su b m ittin g ten ders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves
the righ t to a ccep t o r reject any or all tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b ject
to these reservations, n on com p etitive tenders fo r $200,000 or le s s fo r the 91 -d a y bills and n on com p etitive tenders fo r $50,000 o r
less fo r the 182-day bills w ith ou t stated price fro m a n y on e b id d er w ill be a ccep ted in fu ll at the a vera ge price (in three deci­
m a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust
be m ade o r com p leted at the Federal R eserve B ank on January 22, 1959, in cash o r oth er im m ediately available funds o r in a
like face am ou nt o f T rea su ry bills m aturing January 22, 1959. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash
adju stm en ts w ill be m ade fo r differences betw een the par va lu e o f m a tu rin g bills a ccep ted in exch a n ge and the issue price
o f the n ew bills.
T h e in com e derived fr o m T rea su ry bills, w hether interest o r gain fro m the sale or oth er d isp osition o f the bills, d oes not
have any exem ption , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills does n ot have a n y special treat­
m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er e x cis e taxes,
w h eth er Federal o r State, but are exem pt fr o m all ta xation n o w or hereafter im p o s e d on the principal o r in terest th ere o f b y
a n y State, o r a n y o f the possession s o f the U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the
a m ou n t o f discou n t at w hich T reasu ry bills are origin a lly sold b y the U n ited States is con sidered t o be interest. U n d er
S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the am ou nt o f discou n t at w hich bills issued hereunder
are so ld is n o t con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded
fr o m con sideration as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (oth er than life insurance com p a n ies) issued
hereun der need include in his in com e tax return on ly the differen ce betw een the price paid fo r such bills, w hether on origin al
issue o r o n subsequent purchase, and the a m ou n t actu ally received either u pon sale or redem ption at m aturity d u rin g the
taxable yea r fo r w h ich the return is m ade, as ordinary gain or loss.
T re a su ry D epa rtm en t Circular N o . 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and go v e rn
the con d ition s o f their issue. C opies o f the circular m ay be obtain ed fro m a n y Federal R eserve Bank o r B ranch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 19,
1959, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender forms for the respective series
are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked “ Tender for
Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted
by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account.
Settlement must be made in cash or other immediately available funds or in maturing Treasury bills.
Results o f the last offering o f Treasury bills (91-day bills dated January 15, 1959, maturing April 16, 1959, and
182-day bills dated January 15, 1959, maturing July 16, 1959) are shown on the reverse side o f this circular.




A

lfred

H

ay e s

,

President.
(

over

)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES DATED JANUARY 15, 1959)

Range of Accepted Competitive Bids

9 1-D a y T rea su ry B ills
Maturing April 16, 1959

182-Day Treasury Bills
Maturing July 16, 1959

P r ice

A p p ro x . equiv.
annual rate

A p p ro x . equiv.
annual rate

High ....

99.325

2.670%

98.4 80

3.007%

Low

....

99.280

2.848%

98.458

3.050%

Average

99.290

2.808%

98.466

3.034%

P rice

» Excepting three tenders totaling $2,450,000.

(22 percent o f the amount o f 91-day bills

(3 4 percent o f the amount o f 182-day bills

bid fo r at the low price was accepted.)

bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
91-D ay T rea su ry B ills

D istrict

Boston ................................ .......

182-Day Treasury Bills

Maturing A pril 16, 1959

Maturing July 16, 1959

A ccep ted

A pplied f o r

$

36,702,000

$

26,702,000

A pplied f o r

$

7,318,000

A ccepted

$

7,318,000

New Y ork ..........................

1,518,191,000

1,006,521,000

542,725,000

265,359,000

Philadelphia........................

42,679,000

27,679,000

7,140,000

2,140,000

Cleveland ............................

54,567,000

54,567,000

28,254,000

24,954,000

R ich m on d............................

14,211,000

14,211,000

2,480,000

2,480,000

Atlanta ................................

34,030,000

33,406,000

27,484,000

19,964,000

Chicago ..............................

243,481,000

204,481,000

70,867,000

40,227,000

St. Louis ............................

29,106,000

29,106,000

4,160,000

4,160,000

Minneapolis ........................

15,429,000

15,429,000

4,345,000

4,345,000

Kansas C it y ........................

47,401,000

44,905,000

6,771,000

5,821,000

Dallas ...................................

26,901,000

26,901,000

1,981,000

1,981,000

San Francisco ....................

116,099,000

116,099,000

30,257,000

21,777,000

$733,782,000

$400,526,000

T o t a ls ................ ......

$2,178797,000

$1,600,007,000“

* Includes $300,325,000 noncompetitive tenders accepted at the average price of 99.290.
>
e Includes $30,851,000 noncompetitive tenders accepted at the average price of 98.466.




A t U686

FEDERAL RESERVE BANK
OF NEW YORK

January 14, 1959.

To A ll Banks and Trust Companies
in the Second Federal R eserve D istrict:

It is with deep regret that we announce the death today
o f G.

M o rg a n

B ro w n e ,

M anager o f the E m ergency Planning

D epartm ent o f this Bank.




A

l fr e d

H

a y e s

,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102